Epic Games has just posted a new tech demo for its Unreal Engine 3.
The three-minute video shows plenty of cool real-time stuff, including extreme shifts in depth of field, God rays, colour grading, cascading shadow maps, and water flowing over scene geometry.
Among others, the technology powers Gears of Wars 3, due out late next year.
Update: Epic just released a full list of new features in the Unreal Development Kit this video demonstrates. The link below now points to it.